Business fire insurance is a necessary precaution. Fire insurance protects businesses from suffering significant loss due to a fire in a warehouse, store front or office building. Most fire insurance quotes take into account the type of business you run, where your business is located, and how many people you employ.

All this information will determine the best fire insurance policy, as well as its cost. A fire insurance company can provide you with the specific details of the fire insurance plans it offers. You can also find many resources for fire insurance education and training through:

1. Legal resources that provide fire insurance coverage information.

2. Fire insurance companies that provide tips that can help you get the best rates.

3. Insurance companies and consultants that offer commercial fire prevention training.

Action Steps
The best contacts and resources to help you get it done

Learn about how ISO information and ratings affect the cost of insurance for fire

The Insurance Services Office (ISO) is a company that sets the Public Protection Classification (PPC) of businesses in a particular area. A PPC is determined by the ISO rating of the nearest fire department, as well as the quality of a property's fire resistance.

I recommend: ISO Mitigation Online provides comprehensive information on PPC that helps determine an appropriate fire insurance rate for businesses and residential properties. Krum Fire offers information on how an ISO rating is determined for a fire department, and how this can affect fire insurance premiums.

Explore fire insurance quote information and resources

Many insurance companies provide businesses with resources to determine what type of fire insurance policy is needed and how much they will have to pay for coverage. Other resources from insurance companies include tips on preventing fires in the workplace and how to keep fire insurance premiums low.

I recommend: The Business Owner's Toolkit provides information for small business owners on the importance of having fire insurance and how to decide on the right policy. FindLaw takes a look at the legal side of fire insurance for businesses and how claims are processed after a fire.

Lower fire insurance for business rates with employee training

A good way for businesses to lower fire insurance premiums is to provide employees with fire and property loss prevention training. This is especially useful for employees who work in warehouses or businesses that have large stock rooms. Certified property prevention training can significantly lower monthly premiums.

I recommend: FM Global provides online training courses for businesses on fire prevention, flammable liquids and other property loss prevention topics. The Harrington Group is another organization that can help you keep fire insurance rates down with employee fire prevention training.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Many fire damage insurance policies only cover property and equipment. Additional insurance policies for employees and merchandise may be needed.

As a business owner, you probably know you need liability insurance—but many owners don't realize they may need additional fire insurance. Fires can completely destroy your business. Your building (whether you rent or own) may be devastated, your equipment made unusable, your revenue discontinued. Fires are not uncommon. In 2006, the United States saw 1.6 million fires, which created $11.3 billion in property loss. Be sure your business is fully covered.

There are several types of fire insurance. When looking at a fire insurance rate, be sure to consider which type of insurance for fire best suits your business' needs. The three main types of fire damage insurance are:

1. General liability policies covering fire insurance for businesses,

2. Business fire insurance designed for landlords,

3. And fire insurance coverage for home-based businesses.

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Find general commercial fire insurance

No business should neglect obtaining fire insurance (sometimes also called hazard insurance). Although some carriers provide specific fire insurance, most offer a hazard policy covering fire, flood and similar destructive forces. Be sure to ask for specifics when obtaining fire insurance quotes.

I recommend: Techinsurance is a fire insurance company offering basic commercial liability insurance, which covers property damage by fire in buildings you rent. The Nathan Agencies also provides general liability insurance to cover property damage due to fire.

Buy fire insurance coverage for landlords

As a landlord, you have many burdens. To protect yourself and your property, you shouldn't neglect to have fire insurance designed just for landlords. A good fire insurance policy covers your building and any property you might have within the building.

I recommend: New York Central Mutual Fire Insurance Company provides comprehensive insurance for owners of rental dwelling properties, including fire insurance. CIG Insurance offers fire insurance to landlords. MetLife has landlord insurance covering your rental building(s), other structures on the property (like garages) and any personal property you may have on the premises when there is a fire.

Purchase fire damage insurance for your home-based business

Although your regular home insurance policy may cover your home office, it usually only pays $2,500 or less for business equipment and a mere $250 if you're not at the premises at the time of the fire. And unlike a homeowner's policy, a home business policy will also provide business liability coverage--for example, if a customer is injured on your property.

I recommend: State Farm Insurance provides fire policies for home businesses, as well as storefronts. RLI also offers home business insurance covering fires. Chubb provides extensive home-based business insurance.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some business-related items will usually require separate fire insurance. These include valuable papers, cash, jewelry and some electronics. Always be sure to ask detailed questions of fire insurance companies, making sure any unusual or especially expensive items will be adequately covered.

As a business or property owner, you probably have the basic insurance required to protect your company, employees or dwelling. However, that insurance may not cover you from losses resulting from a fire caused by natural or unnatural occurrences. Fire insurance covers not only your building, but the contents of that building. To better understand this type of insurance, here are a few common terms to familiarize yourself with.

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Public protection classification

The public protection classification, or PPC, is a rating on a scale of 1 to 10 that refers to the fire protection of an area. A rating of 1 is superior and a rating of 10 means that the area doesn't meet the ISO criteria for protection.

I recommend: Visit Insurance Services Offices to find out more on PPC and how ISO works with the community.

Fire legal liability coverage

If your company is located in a building that you rent or lease from the actual owner, you need to have fire liability coverage. This type of coverage will protect your business and belongings, because if the building owner does not possess fire insurance, you will face an uphill battle trying to get compensation.

I recommend: At Lewis-Chester Associates, you can find the technical definition of fire legal liability coverage and what it can do for you.

Total loss

If a fire destroys the contents of your building and the building itself and it can not be salvaged or repaired, you may be told that you have suffered a total loss.

I recommend: United Policyholders offers some tips to see whether you are protected from a total loss.

FAIR plan

If you are having difficulty getting fire insurance, you may be referred to the FAIR Plan for help in obtaining coverage.

I recommend: The David G. Sayles Insurance Company has more information on the FAIR Plan.

Declarations

The insurance declaration is the section of the policy that lists the name of the insured, the property location, the amount of coverage and other basic policy owner information.

I recommend: Go to Health Insurance Online to find alternate descriptions of declarations.

Insuring agreements

Insuring agreements explain what the insurance company will pay for in the event of a fire or what services they will provide for the premium that is paid to them by the insured person or business.

I recommend: There is an in depth explanation of insuring agreements at Real Deal Docs.